Shares of Vera Bradley Inc. fell more than 8 percent in after-hours trading Wednesday, after the womens accessories company forecast results for its fiscal first quarter and full year in 2014 that fell short of Wall Street expectations.
The Fort Wayne company issued the outlook with its fourth-quarter results, which showed a 25 percent profit increase as sales benefited from new store openings.
For the first quarter of fiscal 2014, however, the company said it expects diluted earnings to be in the range of 20 to 22 cents a share on revenue of $120 million to $122 million.
Thats far short of the 35 cents per share that analysts expected on revenue of $131.5 million.
For the full year, Vera Bradley expects earnings of $1.83 to $1.88 a share on revenue of $585 million to $590 million. Analysts were looking for $1.89 a share on revenue of $598 million, according to FactSet.
Shares dropped by $2.01, or 8.1 percent, to $22.88 in after-hours trading.
The disappointing outlook came despite a better-than-expected fourth quarter. For the three months ended Feb. 2, the company earned $25.1 million, or 62 cents a share. That compares with $20.1 million, or 50 cents a share, in the year-ago period.
Johnson & Johnson lowers exec bonuses
Citing disappointments last year, Johnson & Johnson has lowered planned bonuses by 10 percent for new CEO Alex Gorsky and other top executives.
The giant health-products maker and parent of Warsaws DePuy Synthes Cos. called its 2012 results a mix of short-term successes and disappointments, with the latter including slow sales growth, a still-tarnished reputation and failure to get many of its recalled consumer health products back into stores as quickly as hoped.
Still, Gorsky received total compensation worth $8.93 million, up about 62 percent from the $5.52 million total he received in 2011, based on the companys annual proxy statement filed Wednesday.
WaterFurnace income declines
WaterFurnace Renewable Energy Inc. on Wednesday reported fourth-quarter net income and total comprehensive income of $4.1 million, or 33 cents a share, a 24 percent drop from the $5.4 million, or 44 cents a share, posted for the same three months in 2011.
For the year, the Fort Wayne maker of geothermal heat pumps saw its net income and total comprehensive income in 2012 decline to $10.1 million, or 82 cents a share, compared with $13.9 million, or $1.14 a share, a year earlier.
Sales also dipped in 2012 to $119.6 million from $137.5 million in 2011.
Chairman Tim Shields blamed the shortfall on a continued slow economy and low natural gas prices.
Auction planned for former retail property
The property that once housed Value City department store is on the auction block.
Tranzon Asset Advisors of Portland, Maine, will be selling the nearly 75,000-square-foot building at 1130 Coliseum Blvd. N. during an onsite auction at noon April 4.
Tranzon touts the location as having an average daily traffic count of more than 39,000 vehicles.
Value City announced the closure of dozens of stores it operates in 14 states in 2008.